Citizens Financial CEO hunts for wealth deals

Citizens Financial CEO hunts for wealth deals
Van Saun says the bank is remaining disciplined in terms of the price it is willing to pay for wealth firms.
SEP 22, 2021

Citizens Financial Group Inc. has been on a buying spree, but Chief Executive Bruce Van Saun is still chasing one spot: wealth.

“People know that we have an interest in growing there, but that space is heavily sought after by players who can pay up, like PE firms,” Van Saun said in an interview Tuesday. “We’ve come close on a couple additional transactions, but we’re holding our discipline on what we’re willing to pay.”

Any acquisition in the wealth space would follow a string of deals by the nation’s fifth-largest regional bank by assets. So far this year, it’s bulked up in the New York City area with the purchase of 80 HSBC Holdings Plc bank branches. It also struck deals to buy Investors Bancorp for $3.5 billion in July and JMP Group for $149 million earlier this month.

Banks more broadly are competing aggressively to serve the growing ranks of America’s wealthy. Citigroup Inc. is expanding wealth-management offerings around the globe and Deutsche Bank has added private bankers to cater to the rich.

That level of competition has prompted Citizens to be more direct. It’s contacting wealth firms that look like a good fit and attempting to negotiate with their principals directly as a way of avoiding a trudge through the bidding process, according to Van Saun.

Citizens’ recent dealmaking comes amid a broader wave of acquisitions among regional banks. All but one of the five largest such lenders by assets have inked deals for another bank sized somewhere in the billion-dollar range in the past few years. U.S. Bancorp announced on Tuesday that it had struck an $8 billion deal for MUFG Union Bank, expanding its presence in the West Coast.

That’s one part of the country Van Saun views as essential due to the presence of the health care and technology sectors.

“I think you have to be there,” he said, noting that JMP’s presence on the West Coast offers “critical mass” in the region.

Latest News

Am I stuck? Rethinking career mobility at every stage
Am I stuck? Rethinking career mobility at every stage

Why advisors at every stage may have more leverage, flexibility, and strategic options than they realize.

Advisor moves: $1B Stifel team joins Raymond James, Southern Ridge picks Osaic
Advisor moves: $1B Stifel team joins Raymond James, Southern Ridge picks Osaic

A California team with four decades of combined experience and a Kentucky father-son practice headline this week's advisor movement.

AI in wealth management: budgets surge but ROI remains elusive
AI in wealth management: budgets surge but ROI remains elusive

From generative AI on trading desks to personalized portfolio tools, financial firms are spending big on AI, but measuring returns is proving harder.

Arax acquires $3B RIA Transcend Capital in seventh deal of 2026
Arax acquires $3B RIA Transcend Capital in seventh deal of 2026

The fast-growing RIA aggregator adds Transcend Capital Advisors, a multi-state firm with more than 1,000 client relationships.

As layoffs commence, Commonwealth’s digital guru jumps ship
As layoffs commence, Commonwealth’s digital guru jumps ship

Christopher Blotto moved this month to Janney Montgomery Scott.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income